Good morning, everyone, and happy National Day. Tomorrow is the 95th anniversary of the day when King Abdulaziz Al Saud unified the Kingdom, creating the Middle East’s biggest country in terms of land area.

Today’s issue is a light one, featuring a new petrochemical plant from Farabi inaugurated in Yanbu, as well as expert insights into investments of GCC sovereign wealth funds in Asia, and giant mineral producer Maaden’s “strategy refresh” featured in the international press.

BUT FIRST- Forget painting the town red: Shops are painting it green this week in celebration. Loaded up by a wave of deep discounts from retailers, shoppers are flocking to both physical and online stores for the official sales season, which kicked off on 16 September and will last the entire month, transforming the national holiday into a prime window for bargain hunters.

Busy days: Point-of-sale transactions usually show strong growth during the week of the National Day week, with the last week of September 2024 coming in just shy of 12% w-o-w. Data from BNPL firm Tamara also showed the number of retail orders increased 130% during the 2023 National Day season compared to regular days, with online sales outpacing in-store purchases by a whopping eight-to-one margin.

The driver? Marketing tactics centered on urgency and emotion. Fear of missing out drives consumers who perceive offers as a limited-time window they must grab before it’s gone, expense management startup Nqoodlet arguesin a blog post, noting that the satisfaction of securing a bargain provides a form of "retail therapy."

** PROGRAMMING NOTE- EnterpriseAM Saudi will be off tomorrow. We will be back in your inboxes first thing Wednesday morning.

WEATHER- Looks like rain: Thunderstorms, downpours, and fog are expected to sweep across most of the Kingdom today, leading to potential flash floods in Jazan, Asir, Al-Baha, Makkah, and Madinah. Lighter thunderstorms are forecast in Najran, Riyadh, Qassim, Hail, and the Eastern Region.

  • Riyadh: 41°C high / 30°C low,
  • Jeddah: 36°C high / 30°C low
  • Makkah: 40°C high / 32°C low.

PSAs-

#1- Umm Al Qura published the new law for real estate expropriation for public interest and temporary seizure. The law, which was approved by the Cabinet last month and takes effect 120 days after appearing in the official gazette, targets ramping up urban development, expanding infrastructure, and stimulating economic growth while ensuring fair compensation for affected property owners.

The details: Compensation will be based on the property’s market value plus an additional 20% premium to offset losses. The law also permits in-kind compensation, such as granting alternative land or property with a market value 20-40% higher than the original property, and grants tax exemptions on replaced properties for up to five years.

** Want more details? Check our coverage where we dive deep into the new regulations.

#2- Businesses subject to VAT with more than SAR 40 mn in annual revenues have until Tuesday, 30 September 2025 to file their August tax returns, the Zakat, Tax, and Customs Authority (Zatca) said in a statement yesterday. Late submissions may incur fines ranging from 5% to 25% of the declared taxes.

WATCH THIS SPACE-

#1- Chinese tech company Tencent is gearing up to launch its first Middle East cloud region in Riyadh by the end of the year, as part of the USD 150 mn investment announced during Leap 2025, senior executives told Arab News on the sidelines of the Tencent Global Digital Ecosystem Summit 2025 in Shenzhen. The company is working to secure approvals to serve both government and private clients.

Tencent is currently building server rooms in the Kingdom, tailored to “serve local industries in Saudi Arabia, the wider Middle East, and beyond,” director of AI Global Commercialization Eric Li told Arab New. Products like electronic identity checks and tourism-oriented Palm AI could be adopted in various sectors, including finance, telecom and tourism, Li added.

Localization is key: "We are building local teams and working with system integrators to ensure our solutions are fully aligned with Saudi business and regulatory environments,” senior executive vice president Dowson Tong said.

#2- Dar Al Arkan slips on white land tax disclosure: Shares of real estate developer Dar Al Arkan fell 5.8% yesterday to close at SAR 15.8 a piece after the company said that 2.8 mn sqm of its North Riyadh land bank will be subject to updated White Land Tax regulations. Around 181k sqm will be taxed at the highest 10% rate, while some 2.65 mn sqm fall under the 5% bracket. The stock underperformed the real estate sector index, which in turn eased 0.23% to close at 3.3k points yesterday.

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THE BIG STORY ABROAD-

It’s relatively calm in the foreign press this morning, with one story dominating headlines. Canada, the UK, Australia, and Portugal announced their formal recognition of a Palestinian state yesterday, signalling a break with Washington and deepening Israel’s diplomatic isolation. UK Prime Minister Keir Starmer said the decision is meant “to revive the hope of peace and a two-state solution,” while Canadian Premier Mark Carney stressed it aligned with “principles of self-determination and fundamental human rights.” France, Belgium, Malta and other European states are expected to follow suit this week during the UN General Assembly.

What’s next? President Donald Trump — who had threatened Canada with trade consequences over its position and publicly clashed with Starmer over the matter — is set to meet Arab and Muslim leaders on the sidelines of the general assembly to discuss Gaza. Diplomats from the recognizing countries have been working to limit fallout with Washington. (Reuters | Bloomberg | New York Times | The Guardian | BBC | Associated Press | Politico)

ALSO MAKING HEADLINES- Syria will hold its first parliamentary elections since the fall of Bashar Al Assad on 5 October, as President Ahmed Al Sharaa moves to rebuild state institutions and consolidate power after years of conflict. (Reuters | Bloomberg)

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